Linde to build largest air separation plant in Indonesia to supply KRAKATAU POSCO’s new steelworks

Trade News

Jakarta, Indonesia, 11 June 2011 - PT. Linde Indonesia, a member of The Linde Group, announced that it had entered into a long term industrial gases supply scheme agreement with PT. KRAKATAU POSCO (PT.KP).

PT. KRAKATAU POSCO, a joint venture between POSCO and Krakatau Steel, is building a three million tonnes per annum (mtpa) steelworks in the first phase in the Cilegon area, located about 100 km west of Jakarta. PT.KP's new plant will be the first integrated steelworks in Southeast Asia and is targeted to be onstream by the end of 2013.

To support the gases requirements of PT.KP’s new steel plant, Linde will invest about IDR 1 trillion (about EUR 88 million) to install a new air separation plant at Cilegon which is capable of producing approximately 2,000 tons per day (tpd) of oxygen. In addition to meeting the 1,680 tpd oxygen requirement of PT.KP’s new steelworks, Linde’s new plant, which will be commissioned by October 2013, will also produce liquid products to meet the growing demand for industrial gases in West Java.

Mr Sanjiv Lamba, Member of the Executive Board of Linde AG, and Regional Business Unit Head for Linde South & East Asia, said, "The Linde Group is keen to expand our business in Indonesia, one of the fastest growing economies in this region. Our decision to invest and build what will be Indonesia’s largest air separation plant, and also Linde’s largest investment in Indonesia to date, demonstrates our continued commitment to support our valuable customer PT.KP in its growth plans, and also meet future demand and market opportunities going forward," Mr Lamba added.

Mr Darren Webster, President Director of PT. Linde Indonesia said, "The signing of this long term supply scheme contract is a major milestone for Linde in Indonesia. Our new air separation plant will produce more than 3,000 tpd of oxygen, nitrogen and argon, and will enable us to significantly increase our production capacity and enhance our ability to serve the fast growing West Java area," Mr Webster noted.

Mr Kim Dong-Ho, President Director of PT. KRAKATAU POSCO said, "We are very glad to be working with Linde in our new steelworks facility in Cilegon as reliable, cost effective supply of gases plays a vital role in our operational plans. I am pleased that we have reached this long term supply agreement with Linde and look forward to a very successful and mutually beneficial partnership," Mr Kim concluded.

About PT. Linde Indonesia:

PT. Linde Indonesia, a member of The Linde Group, is the leading industrial gas supplier in Indonesia since 1971. PT. Linde Indonesia manufactures and distributes industrial, specialty and medical gases, and provides a range of related services including the installation of gas equipment, pipelines, on site plants and associated engineering services. PT. Linde Indonesia operates in seven locations across Java and is committed to delivering quality and reliable services that create value for our customers.

The Linde Group is a world-leading gases and engineering company with around 48,700 employees in more than 100 countries worldwide. In the 2010 financial year, it achieved sales of EUR 12.868 bn. The strategy of The Linde Group is geared towards sustainable earnings-based growth and focuses on the expansion of its international business with forward-looking products and services. Linde acts responsibly towards its shareholders, business partners, employees, society and the environment – in every one of its business areas, regions and locations across the globe. Linde is committed to technologies and products that unite the goals of customer value and sustainable development.